Question

ABC Corporation
Unadjusted Trial Balance
December 31, 2014
	Debit	Credit
Cash	$         575,232
Short term investments	167,000
Fair value adjustment (Trading)	-
Accounts receivable	190,300
Allowance for doubtful accounts		$               -
Inventory	-
Purchases	350,000
Prepaid insurance	24,600
LT (Debt) investments (HTM)	177,824
Land	75,000
Building	150,000
Accumulated depreciation: building		4,000
Equipment	60,000
Accumulated depreciation: equipment		20,000
Patent	37,500
Accounts payable		75,240
Notes payable		235,000
Income taxes payable		63,800
Unearned rent revenue		36,000
Bonds Payable		800,000
Premium on Bonds Payable		61,771
Common stock		86,000
PIC In Excess of Par-Common Stock		13,000
Retained earnings		-
Treasury stock	49,000
Dividends	41,000
Sales Revenue		792,945
Advertising expense	8,400
Wages expense	67,600
Office expense	21,700
Depreciation expense	24,000
Utilities expense	31,000
Insurance expense	73,800
Income taxes expense	63,800
	$      2,187,756	$   2,187,756

ADJUSTMENTS NEEDED:

1	On March 1, ABC purchased a one-year liability insurance policy for $98,400.
	Upon purchase, the following journal entry was made:
		Dr Prepaid insurance			98,400
			Cr Cash			98,400
	The expired portion of insurance must be recorded as of 12/31/14.
	Notice that the expired portion from March through November has been recorded already.
	Make sure that the Prepaid Insurance balance after the adjusting entry is correct.
2	Depreciation expense must be recorded for the month of December.
	The building was purchased with cash on February 1, 2014 for $150,000 with a remaining useful life of 30 years and a salvage value of $6,000.
		The method of depreciation for the building is straight-line.
	The equipment was purchased with cash on February 1, 2014 for $60,000 with a remaining useful life of 5 years and a salvage value of $3,000.
		The method of depreciation for the equipment is double-declining balance.
	Depreciation has been recorded for the building and equipment for months February through November.
3	On December 1, XYZ Co. agreed to rent space in ABC's building for $12,000 per month,
	and XYZ paid ABC on December 1 in advance for the first three months' rent.
	The entry made on December 1 was as follows:
		Dr Cash			36,000
			Cr Unearned rent revenue			36,000
	The unearned revenue account must be adjusted to reflect the amount earned as of 12/31/14.

THIS IS JUST THREE OUT OF 17 ADJUSTMENTS NEEDED... PLEASE COMPLETE 3 ADJUSTMENTS NEEDED FOR ADJUSTED TRIAL BALANCE. ALSO, IF YOU WOULD BE WILLING TO COMPETE THE PROJECT FOR ME PLEASE LET ME KNOW. WILLING TO PAY GOOD MONEY.

Answer 1

ABC Corporation Journal entries Debit Credit Calculation Date Account 98,400/12*1 31-Dec Insurance expense 8,200 $ 8,200 Prepaid insurance 31-Dec Depreciation expense 400 150,000-6,000)/30*1/12 Accumulated depreciation: building 400 $ 2,000 60,000*(1/5 years)*2*1/12 31-Dec Depreciation expense Accumulated depreciation: equipment 2,000 31-Dec Unearned rent revenue Dec rent earned 12,000 $12,000 Rent Revenue Explanations $98,400 Insurance paid 98,400/12 Insurance per month 8,200 $ 73,800 From Unadjusted TB Insurance expense No. of months insurance expensed months 73,800/8,200 So from March 1 to Nov 30 for 9 months insurance expense accounted We need to account for Dec month only

ABC Corporation Adjusted TB Unadjusted TB Adjustments Debit Credit Debit Credit Debit Credit Account Names Cash 575,232 575,232 Short term investments 167,000 167,000 Fair value adjustment (Trading) Accounts receivable 190,300 190,300 Allowance for doubtful accounts Inventory Purchases 350,000 350,000 Prepaid insurance 24,600 8,200 16,400 LT (Debt) investments (HTM) 177,824 177,824 Land 75,000 75,000 Building 150,000 150,000 Accumulated depreciation: building 400 4,000 4,400 60,000 Equipment 60,000 Accumulated depreciation: equipment 2,000 22,000 20,000 Patent 37,500 37,500 Accounts payable 75,240 75,240 Notes payable 235,000 235,000 Income taxes payable 63,800 63,800 Unearned rent revenue 36,000 12,000 24,000 Bonds Payable Premium on Bonds Payable 800,000 800,000 61,771 61,771 Common stock 86,000 86,000 PIC In Excess of Par-Common Stock 13,000 13,000 Retained earnings Treasury stock Dividends 49,000 49,000 41,000 41,000 Sales Revenue 792,945 792,945 Rent Revenue 12,000 12,000 8,400 Advertising expense 8,400 67,600 Wages expense 67,600 Office expense 21,700 21,700 Depreciation expense 24,000 2,400 26,400 Utilities expense 31,000 31,000 73,800 Insurance expense 8,200 82,000 Income taxes expense 63,800 63,800 Totals 2,187,756 2,187,756 22,600 22,600 2,190,156 2,190,156 Check